Taras Miroshnychenko

Head of practice

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miroshnychenko@prikhodko.com.ua

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Head of Corporate Law and Fintech Practice. Expert in the creation and reorganization of companies, support of M&A transactions, as well as legal support for opening and running a business in the EU, Asia, and North America.

Liquidation of the condominium

The liquidation of an association of co-owners of an apartment building (hereinafter referred to as the ASMH) involves the exclusion of information about it from the unified state register and the loss of the status of a legal entity as a whole. This procedure is regulated by the Civil Code and the Law of Ukraine “On Associations of Co-owners of an Apartment Building” (in particular, Article 28). We will analyze in more detail what the whole process looks like and how long it takes in this article.

When can an ASMH be liquidated by law?

An apartment building ceases to operate if:

all apartments and non-residential premises in an apartment building become the property of one person;
a decision to liquidate was made at the general meeting of co-owners;
a court decision to liquidate the association was made (due to systematic and gross violations of current national legislation).

It is about the second option (we can also talk about the voluntary liquidation of the apartment building) that we will discuss in detail.

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The decision of the members of the condominium association on its liquidation: when is it recognized as valid?

It is worth emphasizing that the general meeting of owners is valid if co-owners who own more than 50% of the total area of all premises (apartments) in the building are present. At the same time, if the issue of liquidation of the association is raised, it is necessary that such a number of participants vote that own 2/3 of the total number of votes of all co-owners of the building.

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What is the procedure for liquidating a condominium association by decision of its members?

The liquidation of a condominium association is clearly regulated. First, it is necessary to make a decision to terminate current activities while simultaneously resolving the issue of forming a liquidation commission or appointing a liquidator (as a rule, this is either the chairman, an accountant or a specially selected lawyer). Secondly, it is necessary to prepare and submit an official notice of the intention to liquidate to creditors (if any), the tax service and the state registrar. The latter enters the information into the Unified State Register, after which the association is assigned the appropriate status of “in the process of termination”.

Thirdly, it is worth starting an inventory (revaluation) of the property of the condominium association and initiating a tax audit. It is also worth auditing the available financial documents, submitting the relevant tax reports and obtaining a certificate of absence of debt to the state budget. As a result, a liquidation balance sheet is drawn up to confirm the possibility of final liquidation.

Finally, after completing all the stages, you only need to submit documents subject to long-term storage (over 10 years) to the archival service, prepare an application and a package of documents for the state registrar. If everything goes well, then in the Unified State Register the status of your condominium association will be changed to “liquidated”.

What documents do you need to prepare for the full liquidation of the condominium association?

The full liquidation of the association will require the preparation of the following documents (and some of them – their notarized copies in accordance with the law):

a completed application for state registration of the termination of a legal entity (OSBB);
an act of the liquidation commission with an approved liquidation balance sheet (the latter must be approved by a decision of the general meeting of co-owners and signed by the chairman of the OSBB with a notarized certificate);
a certificate of absence of debt from the State Tax Service (for payment of taxes, fees and other mandatory payments);
a certificate from the PFU on the absence of debt for payment of a single social contribution;
minutes of the general meeting of the association, which adopted a decision on liquidation;
certified copies of constituent documents;
a certificate from an archival institution on acceptance for storage of documents;
acts of destruction (deletion) of the seal (if any).

In some cases, other documents may also be required. For more detailed information, we recommend ordering a consultation with one of our corporate lawyers. Or better yet, order full legal support for the liquidation of your association. Below, we will examine in detail what services our law firm “Prykhodko and Partners” can offer you.

Liquidation of the condominium

When can an ASMH be liquidated by law?

The decision of the members of the condominium association on its liquidation: when is it recognized as valid?

What is the procedure for liquidating a condominium association by decision of its members?

What documents do you need to prepare for the full liquidation of the condominium association?

Legal support for the liquidation of an apartment building association: what services can we provide?

Legal consultations

Preparation of official notifications to state bodies and the registrar

Support for holding meetings and making decisions

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Andrey Prikhodko